Abstract
This paper presents an economic analysis of child care use by employed women with children under six years of age. Observations of actual child care choices are used to estimate the relative importance assigned by parents to cost, convenience and quality in child care. On the basis of these estimates, the chances that each type of child care arrangement will be used are predicted. Projections of child care use are presented for a range of potential costs, travel times, child-staff ratios, and family circumstances. This study is unique in employing information not only on child care arrangements already used, but also on the alternative arrangements available to individual families. The child care data were collected in a 1977 survey of New York City employees. Overall, the model correctly predicted 78% of the observed child care choices. The results of the analysis show strong effects of cost in child care choice. The demand for day care centers is especially sensitive to user cost; if centers were available free of charge, for example, there is a 65% chance that the average single working mother in the sample would use one. Travel time and child-staff ratios have small but statistically significant effects on the choice of child care arrangements. Weekend work schedules and presence of infants are also important choice factors. Once costs are accounted for, family income has no significant effect on the type of child care chosen.
Published Version
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